Yeah, I usually follow the Greens and warm to MMT thinking, but using interest rates to improve housing affordability is just a really big misuse of a big lever with broad consequencess.

Now, they didn’t talk about it at all in their media release and maybe it hasn’t even been considered by Aus Greens, but a big theme in The Green New Deal in the US is looking at fiscal policies that may reduce inflation, like continuing to reduce dependence on petroleum through electrification and public transport infrastructure (every person who catches PT is reducing oil demand), and improving healthcare through universal healthcare like we do here. Of course construction may be the limiting factor when it comes to inflation, but a wartime-style focus on construction supply is basically what is being proposed by the MMT folk.

Back to Australia and the Greens, if they were talking about price stability and alternatives to higher interest rates I might be more supportive. I can think of another political candidate also calling for lower rates in the US - Donald Trump. The reality is that it’s politically popular to deliver lower rates risking future price inflation.